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Amid the waves of the 'triple high'—high inflation, high interest rates, and high exchange rates—and with this year's minimum wage entering the 10,000-won range, small business owners are found to be seeking survival by reducing hiring and increasing their own labor intensity.

On the 21st, the Korea Federation of Micro Enterprise announced the results of a 'survey on the impact of the minimum wage increase' conducted on 700 small business owners nationwide. The survey showed that 87% of small business owners responded that the burden of the current minimum wage level is "very high." In particular, the payment burden was heaviest in coffee shops, manufacturing, and hair and beauty salons.

A point to note is the 'recession-type surplus' phenomenon appearing in management indicators. While the sales and operating profits of small businesses were predicted to increase slightly, analysis suggests this is the result of cutting hiring to reduce labor costs rather than a market boom. In fact, compared to 2024, the number of regular employees decreased by an annual average of 5.90% through 2026.

The vacancies left by employees became the responsibility of the business owners. While workers' hours decreased in the form of 'split-shift part-time jobs,' business owners' weekly working hours actually increased, intensifying a 'working hour polarization.' To cope with labor cost burdens, 38.4% of small business owners chose 'reducing hiring and suspending recruitment,' and 32.9% chose 'introducing unmanned systems and automation.'

Small business owners most frequently cited '8,500 won to less than 9,000 won' as the appropriate minimum wage level to maintain current operations. Despite rising prices, 76% of small business owners replied that it is difficult to raise prices, showing they have virtually reached their limit.

Song Chi-young, chairman of the Korea Federation of Micro Enterprise, emphasized, "Amid the dual hardships of economic recession and high wages, small business owners are in a position where they must worry about survival," adding, "Practical policy supplementary measures, such as applying the minimum wage differentially by industry and establishing a job stabilization fund, are urgent."

                                                                                                               Oh Se-eun